104 CEOs Leave Their Posts Including Jobs, Kelly

The most notable chief executive officer departure of 2011, if not the last several years, occurred last month, as Steve Jobs, the iconic CEO of Apple, Inc., announced his resignation. He was one of 104 chief executive officer departures announced by U.S.-based companies in August, according to the latest report on CEO turnover released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

The number of CEO exits recorded in August was unchanged from the 104 in July. Last month’s total was up 9.4 percent from August 2010, when 95 CEO changes were announced.

Challenger has now tracked 814 CEO departures in 2011, which is 4.9 percent fewer than the 856 CEO changes announced from January through August last year.

“We are seeing an average of just over 100 CEO changes per month, which is about the same as last year and the year before that,” noted John Challenger, chief executive officer of Challenger, Gray & Christmas. “The steady pace of CEO turnover over the last two-and-a-half years could indicate that companies are waiting to see how the recovery plays out before making any dramatic changes in leadership.”

The recession year of 2008 saw a record number of CEO changes, with departures averaging 124 per month and reaching a year-end total of 1,487. The previous record of 1,478 annual CEO departures came in 2006.

The government and non-profit sector saw the heaviest CEO turnover activity last month with 20 announced departures. It was followed by the health care sector, which had 19 changes in leadership. These two sectors also lead all others in year-to-date CEO departures, with health care organizations announcing 128 changes and government/non-profits announcing 108.

Financial services firms have seen 83 CEO changes this year, including 11 in August. The computer industry follows with 77 CEO departures this year, up from 60 at the same point a year ago. Thirteen of those departures, including Apple’s Jobs, occurred in August.

Other notable departures in August include Robert Kelly of Bank of New York Mellon, who left his post shortly after the company announced 1,500 layoffs. Kelly cited, “differences in approach to managing the company.” Also, sporting goods retailer Sports Authority replaced CEO David Campisi with Darrell Webb, former Jo-Ann Stores CEO, on an interim basis.

Resignation is the most-often cited reason for CEO departures with 245 this year. That is down from 264 resignations at the same point in 2010. Companies have cited retirement 159 times as their leaders’ reasons for leaving. Additionally, a total of 159 CEOs have “stepped down” this year, which means they no longer hold the CEO title, but remain with the company in some other capacity; typically as a board member or chairman of the board.

“We do not anticipate a sudden surge in CEO changes as the year comes to a close. Resignations, retirements and other departures are expected to remain steady, as companies attempt to maintain stability through the uncertainty of this recovery. We could see increased volatility among the ranks of CEOs as the recovery begins to gain momentum and companies opt for leadership that is more growth oriented,” said Challenger.